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The ABC has a duty to use its funding efficiently and effectively. Good financial management is essential for the ABC to deliver its Charter obligations and provide maximum benefit to all Australians.

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FINANCIAL PERFORMANCE 157

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Financial summary

Independent auditor’s report

Financial statements

158 F INANCIAL PERFORMANCE

Revenue by programThis graph shows how funding is allocated to six specified Programs which relate to four Outcomes. Performance against these Outcomes is reported at page 143.

Split of expenditureSplit of actual expenditure broadly represents how the ABC allocates its funds by function.

Percentage of Government funding that was allocated to content-related activities. Percentage of the ABC’s

expenditure spent on making and distributing content.

80%70%+


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Financial summary

Source of fundsThe ABC receives funding from different sources, the majority coming from the Federal Government.

Completion of Annual Financial Statements

On 26 July 2013, the Audit and Risk Committee endorsed the signing of the 2012–13 Financial Statements and the Australian National Audit Office (ANAO) issued an unqualified audit opinion.

Financial Outcome 2012–13

As in previous years, the ABC operated within its total sources of funds and revenue from Government for the 2012–13 financial year.

Sources of Funds 2012–13

The ABC was allocated $1 030.2 million in the May 2012 Federal Budget and $12.1 million in the 2012–13 Additional Estimates process, totalling $1 042.3 million for the 2012–13 year.

The amount allocated to the ABC in the 2013 Federal Budget.

$1.03 billion

The ABC also received $158.2 million from other sources, including ABC Commercial.

The chart “ABC Source of Funds” depicts the ABC’s budgeted funds for the various categories against actual sources for 2012–13 and its budgeted sources for 2013 –14.

Application of Funds

The chart “Split Actual Expenditure 2012–13” broadly represents the ABC’s application of funds by function for the 2012–13 financial year.

160 FINANCIAL PERFORMANCE

Financial summary

The Year AheadRevenue from Government

The May 2013 Federal Budget maintained the ABC’s funding base, provided a $90 million loan from government over three years to assist with the cash flow requirements of the Melbourne Accommodation Project, and provided additional funding for journalism, digital content delivery, increased digital television coverage, and ANZAC Centenary programming.

The ABC’s funding for the 2013 –14 financial year is:

$mTotal revenue from Government per Outcomes 1, 2, 3 and 4 and including equity injection/loan 1 077.1Less Analog Transmission funds 80.4Less Digital Television Transmission funds 109.1Less Digital Radio Transmission funds 3.7Less Loan funds 20.0Total Revenue from Government 863.9

The chart “ABC Revenue from Government by Program 2013–14” broadly represents the ABC’s budgeted appropriation of funds by Program for the 2013–14 financial year.

Budget Strategy

While some additional funding was provided in the May 2013 Federal Budget, this funding is tied to specific initiatives, and terminates after three years, and is not available to address the continual cost pressures arising from the ABC’s existing cost base.

Additional funding announced in the 2013 –14 Budget will allow the ABC to increase the reach, impact and local relevance of news services, to develop documentaries for the ANZAC Centenary, to increase digital television coverage, and to meet the increasing demand for digital content delivered to audiences via web-based and mobile device platforms. Government loan funding will also assist the ABC in meeting the cash-flow requirements for the major property redevelopment in Melbourne.

The continuing decline in the contribution from ABC Commercial has placed further pressure on the Corporation’s financial resources. Other cost pressures have also compounded this situation, especially in the areas of insurance, employer superannuation contributions, and electricity.

In this challenging environment, the 2013 –14 Budget Strategy aims to deliver a balance between applying modest funding towards the critical move into mobile and online environments, while also addressing cost-base sustainability issues faced by the ABC, and ensuring existing activities are maintained at current levels and recurrent activities are funded from recurrent sources.

In the May 2013 Budget, the Government did not address the long-outstanding issue of the adequacy of ABC capital asset replacement funding. The ABC is currently assessing the implications for ABC activities in the medium term, and working on developing options to address this situation.

Comparative Revenue from Government

The 2013 –14 operational revenue from Government of $864 million represents a decrease in real funding of $251 million (or 22.5%) since 1985–86 as depicted in the chart “ABC Operational Revenue from Government”. n

500550600650700750800850900950

1000105011001150


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Revenue from governmentThe ABC operational revenue from Government graph demonstrates the value of funding in real terms over time.

Five-year Analysis 2013 2012 2011 2010 2009ABC Operating $’000 $’000 $’000 $’000 $’000 Cost of Services 1 167 877 1 179 929 1 134 969 1 101 074 1 078 755Operating Revenue 158 853 173 134 181 361 184 260 234 222Net Cost of Services (a) 1 009 024 1 006 795 953 608 916 814 844 533Share of (deficit)/surplus from jointly controlled entities (2 311) (2 317) (1 732) 468 –Revenue from Government 1 023 700 997 403 955 516 915 058 858 411 2013 2012 2011 2010 2009Financial Position $’000 $’000 $’000 $’000 $’000Current Assets 314 343 228 804 234 548 237 927 275 761Non-Current Assets 976 657 1 012 702 985 096 1 004 396 948 920Total Assets 1 291 000 1 124 506 1 219 614 1 242 343 1 224 681Current Liabilities 242 107 223 918 225 608 241 388 230 403Non-Current Liabilities 35 081 29 022 20 590 24 161 48 187Total Liabilities 277 188 252 940 246 198 265 549 278 590Total Equity 1 013 812 988 566 973 446 976 774 946 091 Ratios Current Ratio (b) 1.30 1.02 1.04 0.99 1.20 Equity (c) 79% 80% 80% 79% 77%

(a) Net cost of services is cost of services less operating revenue.(b) Current assets divided by current liabilities.(c) Equity as a percentage of total assets.

In real terms, the ABC’s operational revenue has declined over time.


INDEPENDENT AUDITOR’S REPORT

To the Minister for Broadband, Communications and the Digital Economy

I have audited the accompanying financial statements of the Australian Broadcasting Corporation (the Corporation) for the year ended 30 June 2013, which comprise: a Statement by the Directors and Chief Financial Officer; the Statement of Comprehensive Income; Balance Sheet; Statement of Changes in Equity; Cash Flow Statement; Schedule of Commitments; Schedule of Contingencies; and Notes to and Forming Part of the Financial Statements.

Directors’ Responsibility for the Financial Statements

The directors of the Corporation are responsible for the preparation of the financial statements that give a true and fair view in accordance with the Finance Minister’s Orders made under the Commonwealth Authorities and Companies Act 1997, including the Australian Accounting Standards, and for such internal control as is necessary to enable the preparation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

My responsibility is to express an opinion on the financial statements based on my audit. I have conducted my audit in accordance with the Australian National Audit Office Auditing Standards, which incorporate the Australian Auditing Standards. These auditing standards require that I comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Corporation’s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Corporation’s internal control. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial statements.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.

Auditor-General for Australia

GPO Box 707 CANBERRA ACT 260119 National Circuit BARTON ACTPhone (02) 6203 7500 Fax (02) 6273 5355Email [email protected]


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Independence

In conducting my audit, I have followed the independence requirements of the Australian National Audit Office, which incorporate the requirements of the Australian accounting profession.

Opinion

In my opinion, the financial statements of the Australian Broadcasting Corporation:

(a) have been prepared in accordance with the Finance Minister’s Orders made under the Commonwealth Authorities and Companies Act 1997, including the Australian Accounting Standards; and

(b) give a true and fair view of the matters required by the Finance Minister’s Orders including the Australian Broadcasting Corporation’s financial position as at 30 June 2013 and of its financial performance and cash flows for the year then ended.

Australian National Audit Office

Ian McPheeAuditor-General

Canberra26 July 2013


Statement by the Directors and Chief Financial Officer 165

Statement of Comprehensive Income 166

Balance Sheet 167

Statement of Changes in Equity 168

Cash Flow Statement 169

Schedule of Commitments 170

Schedule of Contingencies 172

1. Summary of Significant Accounting Policies 173

2. Events after the Reporting Period 185

3. Expenses and Revenue 186

4. Expenses 187

5. Own Source Income 188

6. Revenue from Government 189

7. Financial Assets 189

8. Investments Accounted for Using the Equity Method 190

9. Non-Financial Assets 192

10. Payables 199

11. Provisions 200

12. Cash Flow Reconciliation 201

13. Contingent Assets and Liabilities 202

14. Directors’ Remuneration 202

15. Related Party Disclosures 202

16. Officers’ Remuneration 204

17. Auditor’s Remuneration 206

18. Financial Instruments 206

19. Financial Assets Reconciliation 212

20. Assets Held in Trust 212

21. Reporting by Outcomes 212

22. Controlled Entities 214

Financial Statementsfor the year ended 30 June 2013


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In our opinion, the attached financial statements for the year ended 30 June 2013 are based on properly maintained financial records and give a true and fair view of the matters required by the Finance Minister’s Orders made under the Commonwealth Authorities and Companies Act 1997, as amended.

In our opinion, at the date of this statement, there are reasonable grounds to believe that the Australian Broadcasting Corporation will be able to pay its debts as and when they become due and payable.

This statement is made in accordance with a resolution of the Directors.

James Spigelman AC QC Mark Scott AO David Pendleton FCPA Chairman Managing Director Chief Financial Officer 26 July 2013 26 July 2013 26 July 2013

Statement by the Directors and Chief Financial Officer


2013 2012 Notes $’000 $’000EXPENSES Employee benefits 4A 477 499 486 482 Suppliers 4B 429 254 438 648 Depreciation and amortisation 4C 95 405 95 063 Program amortisation 4D 158 046 154 543Finance costs 4E 5 286 Write-down and impairment of assets 4F 6 881 4 214 Net loss from disposal of assets 4G 787 693 Total expenses 1 167 877 1 179 929 OWN-SOURCE INCOME Own-source revenue Sale of goods and rendering of services 5A 125 982 140 208Interest 5B 7 504 8 296 Other revenue 5C 24 674 24 181 Total own-source revenue 158 160 172 685

Gains Net foreign exchange gain 5D 693 449 Net gains 693 449 Total own-source income 158 853 173 134

Net cost of services 1 009 024 1 006 795 Revenue from Government 6 1 023 700 997 403 Share of deficit of jointly controlled entities 8 (2 311) (2 317) Surplus/(deficit) 12365 (11 709) OTHER COMPREHENSIVE INCOME ItemsnotsubjecttosubsequentreclassificationtoprofitorlossChanges in asset revaluation reserve 4 257 21 429 Itemssubjecttosubsequentreclassificationtoprofitorloss Gains on cash flow hedging instruments 79 5 Total other comprehensive income 4 336 21 434

Total comprehensive income 16 701 9 725

The above statement should be read in conjunction with the accompanying notes.

Statement of Comprehensive Incomefor the year ended 30 June 2013

Balance Sheetas at 30 June 2013


6 2013 2012 Notes $’000 $’000ASSETSFinancial assetsCash and cash equivalents 7A 5 850 5 823 Receivables 7B 147 533 81 449Accrued revenue 7C 5 477 11 352Investments accounted for using the equity method 8 17 871 18 333 Totalfinancialassets 176 731 116 957

Non-financialassetsLand and buildings 9A 646 512 691 972 Infrastructure, plant and equipment 9B 248 919 244 165 Intangibles 9C 35 347 38 244Assets classified as held for sale 9D 15 000 – Inventories 9E 153 932 133 273 Prepayments 9F 14 559 16 895 Totalnon-financialassets 1 114 269 1 124 549

Total assets 1 291 000 1 241 506

LIABILITIESPayablesSuppliers 10A 74 609 57 560 Other payables 10B 54 732 40 743 Total payables 129 341 98 303

Provisions Employee provisions 11A 145 422 152 151 Other provisions 11B 2 425 2 486Total provisions 147 847 154 637

Total liabilities 277 188 252 940

NET ASSETS 1 013 812 988 566

EQUITYContributed equity 127 061 118 516Reserves 596 634 592 298 Retained surplus 290 117 277 752 Total equity 1 013 812 988 566

Current assets 314 343 228 804 Non-current assets 976 657 1 012 702 Current liabilities 242 107 223 918 Non-current liabilities 35 081 29 022



Asset Retained revaluation Contributed Hedging Total surplus reserve equity reserve equity

2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Opening balance Balance carried forward from previous year 277 752 289 461 592 302 570 873 118 516 125 466 (4) (9) 988 566 985 791

Adjusted opening balance 277 752 289 461 592 302 570 873 118 516 125 466 (4) (9) 988 566 985 791

Comprehensive income Net revaluation of land and buildings – – 4 257 21 429 – – – – 4 257 21 429

Gains on cash flow hedging instruments – – – – – – 79 5 79 5

Surplus/deficit for the period 12 365 (11 709) – – – – – – 12 365 (11 709)

Total comprehensive income/(loss) 12 365 (11 709) 4 257 21 429 – – 79 5 16 701 9 725

Transactions with owner Distributions to owner Return of capital – – – – (8 555) (12 900) – – (8 555) (12 900)

Contributions by owner Equity injection – – – – 17 100 5 950 – – 17 100 5 950

Sub-total transactions with owner – – – – 8 545 (6 950) – – 8 545 (6 950)

Closing balance as at 30 June 290 117 277 752 596 559 592 302 127 061 118 516 75 (4) 1 013 812 988 566


Statement of Changes in Equityfor the year ended 30 June 2013


6 2013 2012 Notes $’000 $’000 Inflows Inflows (Outflows) (Outflows)OPERATING ACTIVITIESCash receivedReceipts from Government 1 025 200 995 903Goods and services 130 460 134 034Interest 7 390 8 455Net GST received 34 653 44 446Realised foreign exchange gains 79 5Other 32 068 29 127 Total cash received 1 229 850 1 211 970

Cash usedEmployees (482 499) (464 608)Suppliers (631 548) (664 114)Finance costs (6) (286)Total cash used (1 114 053) (1 129 008)

Net cash from operating activities 12 115 797 82 962

INVESTING ACTIVITIESCash receivedProceeds from sale of property, plant and equipment 166 232Proceeds from investments 79 100 104 000Total cash received 79 266 104 232

Cash usedPurchase of property, plant and equipment (60 782) (89 565)Purchase of investments (142 799) (86 231)Total cash used (203 581) (175 796)

Net cash used in investing activities (124 315) (71 564)

FINANCING ACTIVITIESCash receivedEquity contributed by Government 17 100 5 950Total cash received 17 100 5 950

Cash usedRepayment of loans – (5 000)Return of capital (8 555) (12 900)Total cash used (8 555) (17 900)

Netcashusedinfinancingactivities 8 545 (11 950) Net increase/(decrease) in cash and cash equivalents 27 (552)

Cash and cash equivalents at beginning of year 5 823 6 375

Cash and cash equivalents at end of year 7A 5 850 5 823


Cash Flow Statementfor the year ended 30 June 2013


2013 2012 $’000 $’000BY TYPECommitments receivableNet GST receivable on commitments (103 434) (113 597)Other receivables (1) (333 858) (85 066)Total commitments receivable (437 292) (198 663)

Commitments payableCapital commitmentsBuildings 494 9 483 Infrastructure, plant and equipment (2) 11 568 3 013 Total capital commitments 12 062 12 496

Other commitmentsOperating leases (3) 46 452 61 544Attributable to joint ventures (4) 6 269 5 730Transmission networks and services (5) 936 855 1 047 564 Television programs and rights (5) 82 922 94 717Other (5) 125 524 66 691Total other commitments 1 198 022 1 276 246

Net commitments by type 772 792 1 090 079

Schedule of Commitmentsas at 30 June 2013


6 2013 2012 $’000 $’000BY MATURITYCommitments receivableOne year or less (89 686) (56 805)From one to five years (207 555) (106 476)Over five years (140 051) (35 382)Total commitments receivable (437 292) (198 663)

Commitments payableCapital commitmentsOne year or less 12 060 12 496 From one to five years 2 – Total capital commitments 12 062 12 496

Operating lease commitmentsOne year or less 19 222 18 698 From one to five years 27 230 42 846 Total operating lease commitments 46 452 61 544

Other payables commitmentsOne year or less 346 924 327 679 From one to five years 554 610 609 129 Over five years 250 036 277 894 Total other payables commitments 1 151 570 1 214 702

Net commitments by maturity 772 792 1 090 079

The above schedule should be read in conjunction with the accompanying notes.

1. Other receivables comprise transmission, royalties, co-production commitments, resource hire, content licensing, media development support initiatives, contract revenue and grants.

2. This comprises outstanding contractual commitments associated with the purchase of infrastructure, plant and equipment, including communications upgrades and technical equipment fit out.

3. Operating leases included are effectively non-cancellable and comprise:

Nature of Lease General description of leasing arrangement

• Motor vehicles—business Fully maintained operating lease over 24/36 months and/or and senior executive 40 000/60 000km; no contingent rentals; no renewal or purchase

options available.

• Property leases—office Lease payments subject to increase in accordance with CPI or other and business premises agreed increment; initial period of lease ranges from 1 year to 6 years;

options to extend in accordance with lease.

4. Commitments arising from, in proportion, the Corporation’s 18% interest in Freeview Australia Limited and 50% interest in MediaHub Australia Pty Limited.

5. Other payables commitments are covered by agreements and are associated with the supply of transmission services, satellite services, purchase of programs and program rights.


2013 2012 Notes $’000 $’000Contingent liabilities—guaranteesBalance at beginning of year 985 1 202 Net change during the year – (217) Total contingent liabilities—guarantees 13 985 985

The Corporation has no material contingent assets as at 30 June 2013 (2012 Nil).

Details of each class of contingent liabilities and contingent assets listed above are disclosed in Note 13: Contingent Assets and Liabilities, along with information on significant remote contingencies and contingencies that cannot be quantified.

The above schedule should be read in conjunction with the accompanying notes.

Schedule of Contingenciesas at 30 June 2013


61.SummaryofSignificantAccountingPolicies The principal accounting policies adopted in preparing the financial statements of the Australian Broadcasting Corporation (the “Corporation” or “ABC”) are stated to assist in a general understanding of these financial statements.

The financial report for the Corporation for the year ended 30 June 2013 was authorised for issue by the Directors on 26 July 2013.

1.1 Objectives of the Corporation The Corporation is an Australian Government controlled not-for-profit entity. The objectives of the Corporation are derived explicitly from the Australian Broadcasting Corporation Act 1983 and are:

• Objective 1—Ensure the Corporation’s independence, integrity and high standards;• Objective 2—To be recognised as the leading Australian public media space where people engage

with issues and ideas;• Objective 3—Deliver maximum benefit to the people of Australia through the effective and efficient

delivery of the Corporation’s services; and• Objective 4—Sustain and grow the Corporation through high quality leadership and an environment of

responsibility and opportunity.

The Corporation is structured to meet four outcomes:

• Outcome 1—Audiences throughout Australia, and overseas, are informed, educated and entertained.• Outcome 2—Australian and international communities have access to at least the scale and quality of

satellite and analog terrestrial radio and television transmission services that existed at 30 June 2003.• Outcome 3—The Australian community has access to ABC digital television services in accordance

with approved digital implementation plans.• Outcome 4—The Australian community has access to ABC digital radio services in accordance with

approved digital implementation plans.

The continued existence of the Corporation in its present form and with its present programs is dependent on Government policy and on continued funding by Parliament for the Corporation’s administration and programs.

During 2012–13, two changes were made to the Australian Broadcasting Corporation Act (1983) to: (1) include specific reference to the provision of digital media services as one of the functions of the Corporation, and (2) that only the ABC or a prescribed company, can be the provider of Commonwealth funded international services.

1.2 Basis of Preparation of Financial StatementsThe financial statements are general purpose financial statements and are required by clause 1(b) of Schedule 1 to the Commonwealth Authorities and Companies Act 1997.

The financial statements and notes have been prepared in accordance with:

• Finance Minister’s Orders (FMOs) for reporting periods ending on or after 1 July 2012; and• Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards

Board (AASB) that apply for the reporting period.

The Corporation’s financial statements have been prepared on an accrual basis and in accordance with the historical cost convention, except for certain assets and liabilities which are at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position.

The financial statements are presented in Australian dollars and values are rounded to the nearest thousand dollars unless otherwise specified.

Unless alternative treatment is specifically required by an accounting standard or the FMOs, assets and liabilities are recognised in the Balance Sheet when and only when it is probable that future economic benefits will flow to the Corporation or a future sacrifice of economic benefits will be required and the amounts of the assets or liabilities can be reliably measured. However, assets and liabilities arising under executory agreements are not recognised unless required by an accounting standard.

Notes to and forming part of the Financial Statementsfor the year ended 30 June 2013

Notes to and Forming Part of the Financial Statementsfor the year ended 30 June 2013


1.2 Basis of Preparation of Financial Statements continuedLiabilities and assets that are unrecognised are reported in the Schedule of Commitments or the Schedule of Contingencies (other than unquantifiable or remote contingencies, which are reported at Note 13: Contingent Assets and Liabilities).

Unless alternative treatment is specifically required by an accounting standard, income and expenses are recognised in the Statement of Comprehensive Income when and only when the flow, consumption or loss of economic benefits has occurred and can be reliably measured.

1.3SignificantAccountingJudgements,EstimatesandAssumptionsSignificantAccountingJudgementsIn the process of applying the accounting policies listed in this note, the Corporation has taken the fair value of freehold land to be the market value of similar locations and the fair value of freehold buildings to be the depreciated replacement cost, as determined by an independent valuer.

SignificantAccountingEstimatesandAssumptionsThe Corporation has applied the following estimates and assumptions:

• Long service leave, as detailed in Note 1.11: Employee Benefits;• Provision for make good, as detailed in Note 1.12: Leases; • Valuation of properties, plant and equipment, as detailed in Note 1.21: Property (Land and Buildings),

Infrastructure, Plant and Equipment, Assets Held for Sale;• Depreciation, as detailed in Note 1.21: Property (Land and Buildings), Infrastructure, Plant and

Equipment, Assets Held for Sale;• Impairment of non-financial assets, as detailed in Note 1.22: Impairment of Non-Current Assets; and• Program amortisation, as detailed in Note 1.24: Inventories.

No other accounting assumptions or estimates have been identified that have a significant risk of causing a material adjustment to carrying amounts of assets and liabilities within the next year.

1.4 New Australian Accounting StandardsAdoption of New Australian Accounting Standard RequirementsNo accounting standard has been adopted earlier than the application date stated in the standard.

The following adopted requirements have affected the amounts reported in the current or prior periods or are estimated to have a financial effect in future reporting periods.

AASB 2011-9 Amendments to Australian Accounting Standards—Presentation of Items of Other Comprehensive Income. This makes a number of changes to the presentation of other comprehensive income including presenting separately those items that would be reclassified to profit or loss in the future and those that would never be reclassified to profit or loss and the impact of tax on those items. The changes required by this standard have been incorporated in the Statement of Comprehensive Income under the category of Other Comprehensive Income.

AASB 2010-8 Amendments to Australian Accounting Standards—Deferred Tax: Recovery of Underlying Assets. These amendments clarify that the tax base of investment property measured using the fair value model in accordance with AASB 140 Investment Property is based on the premise that the carrying amount will be recovered entirely through sale rather than use. This has had no impact on the ABC.

Other new, revised or amending standards or interpretations that are applicable to the current reporting period did not have a material financial impact, and are not expected to have a future financial impact on the Corporation.

1.SummaryofSignificantAccountingPoliciescontinued




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1.4 New Australian Accounting Standards continuedFuture Australian Accounting Standard RequirementsThe following new standards, amendments to standards or interpretations have been issued by the AASB but are effective for future reporting periods. The impact of adopting these pronouncements, when effective, will not have a material financial impact on the Corporation’s financial statements.

AASB 9 Financial Instruments and AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 apply to reporting periods beginning on or after 1 January 2015 and include changes to classification and measurement, impairment methodology and hedge accounting measures as well as reducing the categories of financial assets to two: amortised cost and fair value. As a result, the Corporation will be required to classify its held to maturity investments and loans and receivables at “amortised cost”. The Corporation has elected not to early adopt this standard to be consistent with the current FMOs.

AASB 10 Consolidated Financial Statements. AASB 10 introduces a new approach to determining which investees should be consolidated. An investor controls an investee when the investor is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. This takes effect for reporting periods beginning on or after 1 January 2013. It is expected to have minimal impact on the ABC.

AASB 11 Joint Arrangements. If the parties have rights to and obligations for underlying assets and liabilities, the joint arrangement is considered a joint operation and partial consolidation is applied. Otherwise the joint arrangement is considered a joint venture and they must use the equity method to account for their interest. The Standard applies to reporting periods beginning on or after 1 January 2014 for not-for-profit entities. The Corporation does not expect this standard to have a material impact in future years.

AASB 12 Disclosure of Interests in Other Entities. AASB 12 contains the disclosure requirements for entities that have interest in subsidiaries, joint arrangements, associates and/or unconsolidated structured entities. The Standard applies to reporting periods beginning on or after 1 January 2013.

AASB 13 Fair Value Measurement (AASB 2011-8 indicates changes to Australian Accounting Standards arising from AASB 13). AASB 13 explains how to measure fair value when required to by other AASBs. It does not introduce new fair value measurements, nor does it eliminate the practicability exceptions to fair value that currently exist in certain standards. The provisions of this are mandatory for reporting periods beginning on or after 1 January 2013.

AASB 119 Employee Benefits. The main change arising from this amendment relates to the treatment of actuarial gains or losses of accrued benefits. This standard applies for reporting periods beginning on or after 1 January 2013. The Corporation has elected not to early adopt this standard to be consistent with the current FMOs.

AASB 2009-11 Amendments to the Australian Accounting Standards arising from AASB 9 [AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 121, 127, 128, 131, 132, 136, 139, 1023, 1038 and Interpretations 10 and 12]. The amendments to these standards arise from the issue of AASB 9 Financial Instruments as discussed above that sets out requirements for the classification and measurement of financial assets. This standard applies to annual reporting periods beginning on or after 1 January 2013. As the Corporation has chosen not to early adopt AASB 9 the amendments to these standards will also not be early adopted.

AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB (December 2010). This adds the requirements in AASB 139 in relation to the de-recognition of financial assets and financial liabilities to AASB 9. AASB 9 retains but simplifies the mixed measurement model and establishes two primary measurement categories for financial assets; amortised cost and fair value. The basis of classification depends on the entity’s business model and the contractual cash flow characteristics of the financial asset. The Standard applies to reporting periods beginning on or after 1 January 2013.

AASB 2011-4 Amendments to Australian Accounting Standards to Remove Individual Key Management Personnel Disclosure Requirements. This removes the requirements to include individual key management personnel disclosures in the notes to the financial statements. This takes effect for reporting periods beginning on or after 1 July 2013. This should have minimal impact on the ABC. The ABC is governed by the disclosure requirements as set in the FMOs. Early adoption is not permitted.



1.4 New Australian Accounting Standards continued

Future Australian Accounting Standard Requirements continuedAASB 2012-2 Amendments to Australian Accounting Standards Disclosures—Offsetting Financial Assets and Financial Liabilities (June 2012). AASB 7 is amended to increase the disclosures about offset positions, including the gross position and the nature of the arrangements. This takes effect for reporting periods beginning on or after 1 January 2013.

AASB 2012-3 Amendments to Australian Accounting Standards—Offsetting Financial Assets and Financial Liabilities (June 2012). The amendments to AASB 132 clarify when an entity has a legally enforceable right to set off financial liabilities permitting entities to present balances net on the balance sheet. This takes effect for reporting periods beginning on or after 1 January 2014.

Other new, revised or amending standards or interpretations that were issued and are applicable to future reporting periods are not expected to have a material financial impact on the Corporation in future reporting periods.

1.5 Foreign Currency Transactions The Corporation enters into foreign currency hedging arrangements to protect its purchasing power in relation to foreign currency exposures. Revenues and expenditures denominated in foreign currencies are converted to Australian dollars at the exchange rates prevailing at the date of the transaction, or at the hedged rate. All gains and losses are taken to profit or loss with the exception of forward exchange contracts that are classified as cash flow hedges used to hedge highly probable transactions. Gains and losses on cash flow hedges held at balance date are taken to equity.

All monetary foreign currency balances are converted to Australian dollars at the exchange rate prevailing at balance date. Monetary assets and liabilities of overseas branches and amounts payable to or by the Corporation in foreign currencies are translated into Australian dollars at the applicable exchange rate at balance date.

1.6 Reporting by Outcomes and SegmentsA comparison by outcomes relevant to the Corporation is presented in Note 21: Reporting by Outcomes. Any intra-government costs are eliminated in calculating the actual budget outcome for the Government overall.

The Corporation principally provides a national television and radio service within the broadcasting industry. It is therefore considered for segmental reporting to operate predominantly in one industry and in one geographical area, Australia.

1.7 RevenueRevenue from the sale of goods is recognised when:

• the risks and rewards of ownership have been transferred to the buyer;• the Corporation retains no managerial involvement or effective control over the goods;• the revenue and transaction costs incurred can be reliably measured; and • it is probable that the economic benefit associated with the transaction will flow to the Corporation.

Revenue from the sale of goods is recognised at fair value of the consideration received net of the amount of GST upon delivery of the goods to customers.

Revenue from rendering of services is recognised by reference to the stage of completion of contracts at the reporting date. Revenue is recognised when:

• the amount of revenue, stage of completion and transaction costs incurred can be reliably measured; and

• the probable economic benefits with the transaction will flow to the Corporation.




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1.7 Revenue continuedThe stage of completion of contracts at the reporting date is determined by reference to the proportion that costs incurred to date bear to the estimated total costs of the transaction.

Credit sales are on normal commercial terms.

Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due, less any Impairment allowance for bad and doubtful debts. The collectability of debts is reviewed at the balance date. Provisions are made when the collectability of debt is no longer probable.

Interest revenue is recognised using the effective interest method as set out in AASB 139 Financial Instruments: Recognition and Measurement.

Subsidies, grants, sponsorships and donations are recognised on receipt unless paid to the Corporation for a specific purpose where recognition of revenue will be recognised in accordance with the agreement.

Revenue from Government Parliament appropriates monies to the Department of Broadband, Communications and the Digital Economy, which is then distributed to the Corporation and recognised as revenue from Government. The full amount received in respect of departmental outputs for the year is disclosed in Note 6: Revenue from Government. Revenues from Government receivable are recognised at their nominal amounts.

1.8 Gains and losses Sale of AssetsGains or losses from disposal of assets are recognised when control of the asset has passed to the buyer.

1.9 GrantsThe Corporation receives grant monies from time to time.

Most grant agreements require the Corporation to perform services or provide facilities, or to meet eligibility criteria. A liability in respect of unearned revenues is recognised to the extent the services or facilities have not been provided or eligibility criteria have not been met.

1.10 Transactions with the Government as OwnerWhere the Corporation is required to return unspent funds to the Government and this return is discretionary, amounts returned are recognised as a return of equity in the year in which the Minister agrees to the return amount.

Equity InjectionsAmounts appropriated by the Parliament as equity injections are recognised as contributed equity in accordance with the FMOs.

Other Distributions to OwnersThe FMOs require that distributions to owners be debited to contributed equity unless it is in the nature of a dividend.

ContributionsIncome is measured at the fair value of the contributions received or receivable. Income arising from the contribution of an asset to the Corporation is recognised when the entity obtains control of the contribution or the right to receive the contribution, it is probable that the economic benefits comprising the contribution will flow to the Corporation and the amount of the contribution can be measured reliably.




1.11EmployeeBenefits Liabilities for services rendered by employees are recognised at the reporting date to the extent that they have not been settled.

Liabilities for short-term employee benefits (as defined in AASB 119 Employee Benefits) and termination benefits expected to be settled within twelve months are measured at their nominal amounts.

The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability.

All other employee benefit liabilities are measured at the present value of the estimated future cash outflows to be made in respect of services provided by employees up to the reporting date.

LeaveThe liability for employee benefits includes provision for annual leave and long service leave. No provision has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees is estimated to be less than the annual entitlement for sick leave.

The leave liabilities are calculated on the basis of employees’ remuneration at the estimated salary rates that will apply at the time the leave is taken, including the employer superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination.

The liability for long service leave for the Corporation has been determined by reference to the work of an actuary, Professional Financial Consulting Pty Ltd, as at 30 June 2013. The liability for long service leave represents the present value of the estimated future cash outflows to be made by the Corporation resulting from employees’ services provided up to the balance date. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation.

SuperannuationEmployees are members of the Commonwealth Superannuation Scheme (CSS), Public Sector Superannuation Scheme (PSS), the Public Sector Superannuation Accumulation Plan Scheme (PSSap) or another non-Commonwealth Superannuation fund.

The CSS and PSS are defined benefit schemes for the Australian Government. The PSSap and other non-Commonwealth funds are defined contribution schemes.

The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled by the Australian Government in due course. This liability is reported by the Department of Finance and Deregulation as an administered item.

The Corporation makes employer contributions to the employee superannuation schemes at rates determined by an actuary to be sufficient to meet the current cost to the Government of the superannuation entitlements of the Corporation’s employees. The Corporation accounts for the contributions as if they were contributions to defined contribution plans.

The liability for superannuation recognised as at 30 June 2013 represents outstanding contributions at the end of the period.

1.12 LeasesA distinction is made between finance leases and operating leases. Finance leases effectively transfer from the lessor to the lessee substantially all the risks and benefits incidental to ownership of leased non-current assets.

An operating lease is a lease that is not a finance lease. In operating leases, the lessor effectively retains substantially all such risks and benefits. Operating lease payments are expensed on a straight line basis which is representative of the pattern of benefits derived from the leased assets.

Operating lease rentals are not segregated between minimum lease payments, contingent rents and sublease payments, as required by AASB 117 Leases, as these components are not individually material.




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1.12 Leases continuedLease incentives taking the form of ‘free’ leasehold improvements and rent holidays are recognised as liabilities. These liabilities are reduced by allocating lease payments between rental expense and reduction of the liability.

Provision for Make GoodA provision for make good exists when the Corporation has an obligation to ‘make good’ leased properties at the end of the lease term. As many of the leases are negotiable, the Corporation has determined the provision as set out below.

Retail leased premisesA provision has been recognised for retail leases where the Corporation is obligated per the lease agreement to make good the site or where the Corporation believes there is some probability that it will incur costs to make good the site. The provision is calculated based on the estimated average cost to make good each site, plus an allowance for inflation.

Other leased premisesA provision has been recognised for other leases where the Corporation is obligated per the lease agreement to make good the site or where the Corporation believes there is some likelihood that it will incur costs to make good the site. The provision is calculated based on the estimated cost to make good each site, plus an allowance for inflation.

1.13 Borrowing CostsAll borrowing costs are expensed as incurred.

1.14 Cash and Cash Equivalents Cash and cash equivalents are recognised at their nominal amounts. Cash and cash equivalents include:

• cash on hand; and• cash at bank and short term deposits with an original maturity of 3 months or less that are readily

convertible to known amounts of cash and subject to insignificant risk of changes in value.

1.15 Financial AssetsThe Corporation classifies its financial assets in the following categories:

• financial assets at fair value through profit or loss;• held-to-maturity investments;• available-for-sale financial assets; and• loans and receivables.

The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. Financial assets are recognised and derecognised upon trade date.

EffectiveInterestMethodThe effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset, or, where appropriate, a shorter period.

Income is recognised on an effective interest rate basis except for financial assets that are recognised at fair value through profit or loss.

FinancialAssetsatFairValueThroughProfitorLossFinancial assets are classified as financial assets at fair value through profit or loss (FVTPL) where the financial assets:

a. have been acquired principally for the purpose of selling in the near future; b. are derivatives that are not designated and effective as a hedging instrument; or




1.15 Financial Assets continued

FinancialAssetsatFairValueThroughProfitorLosscontinuedc. are parts of an identified portfolio of financial instruments that the Corporation manages together and

has a recent actual pattern of short-term profit-taking.

Assets in this category are classified as current assets.

Financial assets at fair value through profit or loss are stated at fair value, with any resultant gain or loss recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any interest earned on the financial asset. The Corporation’s financial assets in this category are forward exchange contracts which are derivative financial instruments. Gains and losses on these items are recognised through profit or loss except if they are classified as a cash flow hedge where they are recognised in the hedging reserve within equity.

DerivativesForward exchange contracts are initially recognised at fair value on the date on which the contract is entered into and are subsequently revalued to reflect changes in fair value. Forward exchange contracts are carried as assets when their net fair value is positive and as liabilities when their net fair value is negative.

For the purpose of hedge accounting, the Corporation’s hedges are classified as cash flow hedges when they hedge exposure to variability in cash flows that is attributable either to a particular risk associated with a recognised asset, liability or to a highly probable forecast transaction.

At the inception of a hedge relationship, the Corporation formally designates and documents the hedge relationship to which the Corporation wishes to apply hedge accounting and the risk management objective and strategy for undertaking the hedge. The documentation includes identification of the hedging instrument, the hedged item or transaction, the nature of the risk being hedged and how the Corporation will assess the hedging instrument’s effectiveness in offsetting the exposure to changes in the hedged item’s fair value or cash flow attributable to the hedged risk.

Such hedges are expected to be highly effective in achieving offsetting changes in fair value or cash flows and are assessed on an ongoing basis to determine that they actually have been highly effective throughout the financial reporting periods for which they were designated.

The effective portion of the gain or loss on the cash flow hedge is recognised directly in equity, while the ineffective portion is recognised in profit or loss.

Amounts taken to equity are transferred to profit or loss when the hedged transaction affects profit or loss, such as when hedged income or expenses are recognised or when a forecast sale or purchase occurs. When the hedged item is the cost of a non-financial asset or liability, the amounts taken to equity are transferred to the initial carrying amount of the non-financial asset or liability.

If the forecast transaction is no longer expected to occur, amounts previously recognised in equity are transferred to profit or loss. If the hedging instrument expires or is sold, terminated or exercised without replacement or rollover, or if its designation as a hedge is revoked, amounts previously recognised in equity remain until the forecast transaction occurs. If the related transaction is not expected to occur, the amount is taken to profit or loss.

Held-to-Maturity InvestmentsNon-derivative financial assets with fixed or determinable payments and fixed maturity dates that the Corporation has the positive intent and ability to hold to maturity are classified as held-to-maturity investments in accordance with AASB 139 Financial Instruments: Recognition and Measurement. Held-to-maturity investments are recorded at amortised cost using the effective interest method less impairment, with revenue recognised on an effective yield basis.

Surplus cash has been invested into short term investments with maturities at acquisition date of greater than three months. These investments are included as ‘other receivables’.


Loans and Receivables



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1.15 Financial Assets continuedLoans and ReceivablesTrade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as loans and receivables in accordance with AASB 139 Financial Instruments: Recognition and Measurement.

They are included in current assets, except for maturities greater than 12 months after the balance sheet date. These are classified as non-current assets. Loans and receivables are measured at amortised cost using the effective interest method less impairment. Interest is recognised by applying the effective interest rate.

Trade receivables are normally settled within 30 days unless otherwise agreed and are carried at amounts due, less an allowance for impairment.

Impairment of Financial AssetsFinancial assets are assessed for impairment at each balance date.

Financial assets held at amortised costIf there is objective evidence that an impairment loss has been incurred for loans and receivables or held to maturity investments held at amortised cost, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the asset’s original effective interest rate.

The carrying amount is reduced by way of an allowance account. The loss is taken to the Statement of Comprehensive Income.

Bad and doubtful debts The Corporation makes a specific provision for debts considered doubtful by conducting a detailed review of material debtors, making an assessment of the likelihood of recovery of those debts and taking into account past bad debts experience. Bad debts are written off when identified.

1.16 Financial Liabilities Financial liabilities are classified as ‘other financial liabilities’ in accordance with AASB 139 Financial Instruments: Recognition and Measurement. The Corporation has no interest bearing liabilities at 30 June 2013.

Other Financial LiabilitiesOther financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs. The fair value of loans from Government is deemed to be the initial principal amount. The Corporation does not have any loans from government or commercial bank loans.

Other financial liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis.

The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period.

Loans are classified as current liabilities unless the Corporation has the unconditional right to defer settlement for at least 12 months after the balance sheet date.

Supplier and other payables are recognised at amortised cost. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced). Standard ABC settlement terms are 30 days commercial.

1.17 Repairs and Maintenance Maintenance, repair expenses and minor renewals which do not constitute an upgrade or enhancement of equipment are expensed as incurred.




1.18 Joint VenturesJoint ventures are accounted for using the equity method in accordance with AASB 128 Investments in Associates and Joint Ventures and the FMOs. Further details relating to joint ventures, to which the Corporation is a party, are provided in Note 8: Investments Accounted for Using the Equity Method.

1.19 Contingent Assets and Contingent LiabilitiesContingent assets and contingent liabilities are not recognised in the Balance Sheet but are disclosed in the relevant schedule and Note 13: Contingent Assets and Liabilities. They may arise from uncertainty as to the existence of an asset or liability, or represent an asset or liability in respect of which the amount cannot be reliably measured.

Contingent assets are disclosed when settlement is probable but not virtually certain and contingent liabilities are disclosed when settlement is greater than remote.

1.20 Acquisition of AssetsAssets are recorded at cost at the time of acquisition except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken.

Assets acquired at no cost, or for nominal consideration, are recognised as assets at their fair value, at acquisition date.

1.21Property(LandandBuildings),Infrastructure,PlantandEquipment, Assets Held for SaleAsset Recognition ThresholdPurchases of property, infrastructure, plant and equipment are recognised initially at cost in the Balance Sheet.

Purchases costing less than $2 000 are expensed in the year of acquisition except where they form part of a project or group of similar items, which are significant in total.

Basis of Revaluation Land, buildings, infrastructure, plant and equipment are carried at fair value. Fair values for each class of asset are determined as shown below.

Asset Class Fair Value Measured at Freehold Land Market Value Freehold Buildings Depreciated replacement cost Leasehold Land Depreciated replacement cost Leasehold Buildings Depreciated replacement cost Leasehold Improvements Depreciated replacement cost Infrastructure, plant and equipment Depreciated replacement cost

Following initial recognition at cost, property, infrastructure, plant and equipment are carried at fair value less subsequent accumulated depreciation and accumulated impairment losses.

Valuations are conducted with sufficient frequency to ensure that the carrying amounts of assets do not materially vary, with the assets’ fair values as at the reporting date. The regularity of independent valuations depends upon the volatility of movements in market values for the relevant assets.

Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity under the heading of revaluation reserve except to the extent that it reverses a previous revaluation decrement of the same asset class that was previously recognised through profit or loss. Revaluation decrements for a class of assets are recognised directly through profit or loss except to the extent that they reverse a previous revaluation increment for that class.

Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset restated to the revalued amount.




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1.21Property(LandandBuildings),Infrastructure,PlantandEquipment, Assets Held for Sale continuedDepreciationDepreciable property, infrastructure, plant and equipment assets are written-off to their estimated residual values over their estimated useful lives using the straight-line method of depreciation. Leasehold improvements are depreciated on a straight-line basis over the lesser of the estimated useful life of the improvements or the unexpired period of the lease.

Depreciation rates (useful lives) and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate.

Depreciation rates applying to each class of depreciable asset are initially based on the following useful lives:

2013 2012Leasehold land—long term 99 to 120 years 99 to 120 yearsBuildings on freehold land 50 years 50 yearsLeasehold buildings Life of Lease (up to 50 years) Life of Lease (up to 50 years)Leasehold improvements 5 to 50 years 5 to 50 yearsInfrastructure, plant and equipment 3 to 15 years 3 to 15 years

The aggregate amount of depreciation and amortisation allocated for each class of asset during the reporting period is disclosed in Note 4C: Depreciation and amortisation.

Assets Held for SaleAssets held for sale are stated in the Balance Sheet at the lower of carrying value or fair value less costs to sell.

Impairment losses are recognised for any initial or subsequent write-down of assets classified as held for sale to their fair value less costs to sell.

Any gains for subsequent increases in fair value less costs to sell for assets classified as held for sale are recognised only to the extent that they are not in excess of the cumulative impairment losses that have been recognised in accordance with AASB 5 Non-current Assets Held for Sale and Discontinued Operations or previously in accordance with AASB 136 Impairment of Assets.

If any assets classified as held for sale no longer meet the criteria under AASB 5 Non-current Assets Held for Sale and Discontinued Operations, the Corporation will cease to classify the asset as held for sale. Non-current assets that cease to be classified as held for sale are measured at the lower of:

a. the carrying amount before the asset was classified as held for sale, adjusted for any depreciation, amortisation or revaluations that would have been recognised had the asset not been classified as held for sale; and

b. the recoverable amount at the date of the subsequent decision not to sell.

1.22 Impairment of Non-Current AssetsAll non-current assets except:

• inventories;• assets arising from employee benefits;• financial assets that are within the scope of AASB 139 Financial Instruments: Recognition and

Measurement; and• non-current assets (or disposal groups) classified as held for sale in accordance with AASB 5 Non-

current Assets Held for Sale and Discontinued Operations;

are subject to an assessment as to indicators of impairment under AASB 136 Impairment of Assets.

At the reporting date, the Corporation has assessed whether there are any indications that assets may be impaired.




1.22 Impairment of Non-Current Assets continuedWhere indications of impairment exist, the asset’s recoverable amount is estimated and an impairment adjustment made if the asset’s recoverable amount is less than its carrying amount.

Recoverable amount of an asset is the greater of its fair value less costs to sell and its value in use. Value in use is the present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset’s ability to generate future cash flows, and the asset would be replaced if the Corporation were deprived of the asset, its value in use is taken to be its depreciated replacement cost.

1.23 Intangible AssetsThe Corporation’s intangibles comprise software for internal use, broadcast licences and spectrum provided by the Australian Government.

Software is initially recognised at cost and amortised on a straight-line basis over anticipated useful lives between 3–8 years (2012 3–8 years). These assets are assessed for indications of impairment. The carrying amounts of impaired assets are written down to the lower of their net market selling price or depreciated replacement cost.

The Corporation’s right to use broadcast licences and spectrum are held at their fair value.

1.24 InventoriesInventories held for resale are valued at the lower of cost and net realisable value. Inventories not held for resale are valued at the lower of cost, adjusted for any loss in service potential, based on the existence of a current replacement cost that is lower than the original acquisition cost or other subsequent carrying amount.

Produced ProgramsTelevision programs are produced for domestic transmission and include direct salaries and expenses and production overheads allocated on a usage basis to the program. Production overheads not allocated to programs are expensed in the period in which they are incurred. External contributions received in respect of co-production of television programs are offset against production costs which are recorded as Inventories in the Balance Sheet.

The cost of produced television program inventory is amortised as follows:

• News, Current Affairs and Live Programs—100% on first screening;• Factual and Entertainment programs based on current topics—100% on first screening;• Childrens, Education and Movies—straight line over three years from completion of production;• All other programs not covered above—90% first screening and 10% second screening or in third

year; and• Programs not shown within three years of completion or purchase to be amortised 100% in year

three.

The costs of programs produced for Radio are expensed as incurred. Such programs are normally broadcast soon after production, stock on hand at any time being minimal.

Purchased ProgramsPurchased program inventory is amortised in accordance with the policy noted above or over the rights period of the contract (whichever is lesser).

Subsequent sales of residual rights are recognised in the period in which they occur.

Write-down of Merchandise InventoryThe amount of any write-down of inventories to net realisable value and all losses of inventory are recognised as an expense in the period the write-down or loss occurs. The amount of any reversal of any write-down of inventories arising from an increase in the net realisable value will be recognised as a reduction in the amount of inventories recognised as an expense in the period in which the reversal occurs.




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1.24 Inventories continuedWrite-down of Inventory Held for DistributionWhen inventories held for distribution are distributed, the carrying amount of those inventories is recognised as an expense. The amount of any write-down of inventories for loss of service potential and all losses of inventories are recognised as an expense in the period the write-down or loss occurs. The amount of any reversal of any write-down of inventories arising from a reversal of the circumstances that gave rise to the loss of service potential will be recognised as a reduction in the amount of inventories recognised as an expense in the period in which the reversal occurs.

1.25 ProvisionsProvisions are recognised when the Corporation has a present legal or constructive obligation as a result of a past event, where it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

1.26 TaxationIncome Tax The Corporation is not subject to income tax pursuant to Section 71 of the Australian Broadcasting Corporation Act 1983.

The Corporation’s controlled entities, Music Choice Australia Pty Ltd and The News Channel Pty Limited, while subject to income tax, have been inactive since the year ended 30 June 2000 up to and including 30 June 2013.

The Corporation’s equity interests in MediaHub Australia Pty Limited, Freeview Australia Pty Limited and National DAB Licence Company Limited are subject to income tax.

Goods and Services Tax (GST)Revenues, gains, expenses and assets are recognised net of the amount of GST except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of the revenue or expense.

Receivables and payables are stated with the amount of GST included.

The net amount of GST receivable from the ATO is included as a financial asset in the Balance Sheet while any net amount of GST payable to the ATO is included as a liability in the Balance Sheet.

Cash flows are included in the Cash Flow Statement on a net basis. The GST components arising from investing and financing activities which are recoverable from or payable to the ATO are classified as operating cash flows.

Commitments and contingencies are disclosed on a net basis. Net GST commitments recoverable from, or payable to the ATO are disclosed.

2. Events after the Reporting PeriodThere was no subsequent event that had the potential to significantly affect the ongoing structure and financial activities of the entity.




3. Expenses and Revenue2013 2012

Notes $’000 $’000ExpensesArtist fees 3 983 4 186 Auditor’s remuneration 17 223 210 Communications 23 132 23 823 Computer costs 7 385 7 208 Consultants and contractors 26 984 25 784 Depreciation and amortisation 4C 95 405 95 063 Employee benefits 4A 477 499 486 482 Finance costs 4E 5 286 Freight 4B 1 033 1 084 Incidental expenses 4 024 4 347 Legal costs 2 580 1 994 Materials and minor items 13 106 11 306 Merchandising and promotion 66 002 75 531 Operating leases and occupancy 31 262 31 815 Program amortisation 4D 158 046 154 543 Program rights 13 840 13 532 Repairs, maintenance and hire 17 404 18 716 Satellite and transmission 37 281 39 420 Transmission services 151 310 153 276 Travel 16 001 16 564 Website and video production 5 664 5 212 Workers’ compensation premiums 4B 8 040 4 640 Write-down and impairment of assets 4F 6 881 4 214 Net loss from disposal of assets 4G 787 693 Total expenses 1 167 877 1 179 929

Own-source incomeCo-production revenue 223 487 Interest 5B 7 504 8 296 Insurance settlement 5C 125 66 Merchandising revenue 79 999 85 910 Net foreign exchange gain—non-speculative 5D 693 449 Program sales 4 649 6 114 Rent and hire of facilities 13 138 12 368 Royalties 26 585 33 437 Subsidies, grants and contract revenue 5C 21 355 20 654 Technology sales 1 388 1 892 Other 5C 3 194 3 461 Total own-source income 158 853 173 134

Net cost of services 1 009 024 1 006 795

Revenue from Government 6 1 023 700 997 403

Share of deficit of jointly controlled entities 8 (2 311) (2 317)

Surplus/(deficit) 12 365 (11 709)



64. Expenses2013 2012

Notes $’000 $’0004AEmployeebenefitsWages and salaries 347 305 340 597 Superannuation—defined contribution plans 26 605 24 441 Superannuation—defined benefit plans 38 535 35 155 Leave and other entitlements 42 590 65 649Separation and redundancies 12 829 11 195 Other employee benefits 9 635 9 445 Totalemployeebenefits 477 499 486 482

4B Suppliers Goods 104 357 111 924 Services—external parties 293 561 296 914 Services—related entities 5 217 4 590 Operating lease rentals 17 046 19 496 Workers' compensation premiums 8 040 4 640 Freight 1 033 1 084 Total suppliers 429 254 438 648

4C Depreciation and amortisationDepreciationLand and buildings 35 650 33 878 Leasehold improvements 9 156 7 176 Infrastructure, plant and equipment 41 302 45 790 Total depreciation 86 108 86 844

Amortisation Intangibles 9 297 8 219 Total amortisation 9 297 8 219 Total depreciation and amortisation 95 405 95 063

4D Program amortisation Purchased 44 432 41 581 Produced 113 614 112 962 Total program amortisation 158 046 154 543

4E Finance costs Loans from Government – 286 Other finance costs 5 – Totalfinancecosts 18 5 286

4F Write-down and impairment of assetsImpairment of: Receivables and advances

1 166

1 142

Land and buildings 3 002 129 Infrastructure, plant and equipment 146 1 965 Intangibles – 83 Assets under construction 1 972 96 Impairment of inventory held for sale 595 799 Total write-down and impairment of assets 6 881 4 214



4. Expenses continued

2013 2012 Notes $’000 $’000

4G Net loss from disposal of assets Land and buildings

Total proceeds from sale – – Carrying value of assets sold – 22 Cost of disposal – – Net loss from disposal of land and buildings – 22

Infrastructure,plantandequipment Total proceeds from disposal (166) (232)Carrying value of assets disposed 917 862 Cost of disposal 36 41 Netlossfromdisposalofinfrastructure,plantandequipment 787 671

Loss from disposal of assetsTotal proceeds from disposal (166) (232)Total carrying value of assets disposed 917 884 Total costs of disposal 36 41 Net loss from disposal of assets 787 693

5. Own Source Income2013 2012

Notes $’000 $’0005A Sale of goods and rendering of servicesGoods 111 233 125 461 Services—external parties 14 664 14 551 Services—related entities 85 196 Total sale of goods and rendering of services 125 982 140 208

Cost of sales of goods 57 082 68 333

5B InterestDeposits 7 504 8 296 Total interest 18 7 504 8 296

5C Other revenueSubsidies, grants and contract revenue (a) 21 355 20 654 Insurance settlement 125 66 Other 3 194 3 461 Total other revenue 24 674 24 181

5D Net foreign exchange gain Non-speculative 693 449 Total net foreign exchange gain 18 693 449

(a) Subsidies, grants and contract revenue includes $20 334 000 (2012 $19 803 945) received from the Department of Foreign Affairs and Trade (DFAT) for the provision of Australia’s international television service, Australia Network. In December 2011, the Government announced that the Corporation will have permanent responsibility for delivering the Australia Network service.



66. Revenue from Government2013 2012 $’000 $’000

6A Revenue from Government—Outcome 1 830 700 806 429

6B Revenue from Government—transmission revenueOutcome 2—satellite and analog transmission 88 669 92 473 Outcome 3—digital transmission 100 673 94 913 Outcome 4—digital radio transmission 3 658 3 588 Total revenue from Government—transmission revenue 193 000 190 974

Total revenue from Government 1 023 700 997 403

Revenue from Government was received from the Department of Broadband, Communications and the Digital Economy.As at 30 June 2013 the Corporation had returned $8 555 207 (2012 $12 900 402) as a repayment of capital related to unspent transmission revenue in previous years.

7. Financial assets2013 2012

Notes $’000 $’0007A Cash and cash equivalentsCash on hand or on deposit 5 235 5 443 Salary sacrifice funds 293 249 Public funds held by third parties 322 131 Total cash and cash equivalents 18 5 850 5 823

7B Receivables Goods and servicesGoods and services—related parties 8 – Goods and services—external parties 4 716 5 688 Total receivables for goods and services 18 4 724 5 688

Other receivablesHeld to maturity financial assets 18 131 450 69 600 Net GST receivable from the Australian Taxation Office 19 9 982 4 394 Other 18 1 408 1 802 Total other receivables 142 840 75 796

Total receivables (gross) 147 564 81 484

Less impairment allowance account Goods and services 19 (31) (35)Total impairment allowance (31) (35)

Total receivables (net) 147 533 81 449

Receivables are expected to be recovered in:No more than 12 months 147 067 80 925 More than 12 months 466 524 Total receivables (net) 147 533 81 449



7. Financial assets continued

2013 2012 Notes $’000 $’000

Receivables (gross) are aged as follows: Not Overdue 146 873 80 936Overdue by:– 0 to 30 days 466 198 – 31 to 60 days 100 147 – 61 to 90 days 70 92 – more than 90 days 55 111 Total receivables (gross) 147 564 81 484

The impairment allowance account is aged as follows:Not Overdue – –Overdue by:– 0 to 30 days – –– 31 to 60 days – –– 61 to 90 days – (1)– more than 90 days (31) (34)Total impairment allowance account (31) (35)

Reconciliation of the impairment allowance accountOpening balance (35) (279)Amounts written off 30 207 Amounts recovered or reversed 5 36 Net (increase)/decrease recognised in surplus/(deficit) (31) 1 Closing balance (31) (35)

Other receivables includes forward exchange contracts held as cash flow hedges of $70 287 (2012 nil) and forward exchange contracts at fair value through profit and loss of $300 557 (2012 $20 207).

7C Accrued revenueGoods and services 5 257 11 246 Interest receivable 220 106 Total accrued revenue 18 5 477 11 352

Accrued revenues are all due to be settled within 12 months.

8. Investments Accounted for Using the Equity Method2013 2012

Notes $’000 $’0008. Investments in jointly controlled entitiesMediaHub Australia Pty Limited 17 871 18 333Freeview Australia Pty Limited* – –National DAB Licence Company Limited* – –Total equity accounted investments 18 17 871 18 333

* Investment is rounded to Nil as it is less than $1 000.

Investments in equity accounted investments are not expected to be recovered in the next 12 months.



6 8. Investments Accounted for Using the Equity Method continued

Summarisedfinancialinformationofjointlycontrolledentities MediaHub Freeview DAB Total $’000 $’000 $’000 $’0002013Balance sheetFinancial assets 11 668 279 7 11 954 Non-financial assets 31 041 24 – 31 065 Financial liabilities 1 194 294 6 1 494 Net assets 41 515 9 1 41 525

Statement of comprehensive income Income 12 834 1 999 6 14 839Expense 19 511 1 999 6 21 516 Deficit (6 677) – – (6 677)

Shareofdeficitofjointlycontrolledentities Share of net deficit before tax (3 338) – – (3 338) Income tax benefit (1 027) – – (1 027) Shareofdeficitofjointlycontrolledentitiesaftertax (2311) – – (2311)

2012Balance sheet Financial assets 11 484 201 1 11 686 Non-financial assets 35 185 56 – 35 241 Financial liabilities 7 227 221 – 7 448 Net assets 39 442 36 1 39 479

Statement of comprehensive incomeIncome 10 246 2 413 6 12 665 Expense 16 768 2 413 6 19 187 Deficit (6 522) – – (6 522)

Shareof(deficit)/surplusofjointlycontrolledentitiesShare of net surplus/(deficit) before tax (3 261) – – (3 261)Income tax expense/(benefit) (944) – – (944) Shareofdeficitofjointlycontrolledentitiesaftertax (2 317) – – (2 317)

No dividends were received from any of these entities in 2013 (2012 Nil).

MediaHub Australia Pty Limited MediaHub Australia Pty Limited (MediaHub) is a joint venture between the Corporation and WIN Television Network Pty Ltd (WIN) to operate a custom designed play-out facility for television presentation. Both the ABC and WIN own an equal number of ordinary shares in MediaHub.

Freeview Australia LimitedFreeview Australia Limited (Freeview) is a joint venture between many of Australia’s free-to-air national and commercial television broadcasters to promote consumer adoption of free-to-air digital television within Australia. The ABC holds 160 $0.11 shares (2012 $0.10 shares) equating to a 18% (2012 16%) share in Freeview, with four (2012 four) other broadcasters each also holding a 18% (2012 16%) share in Freeview, with the remaining shares held by a further two (2012 three) broadcasters.

National DAB Licence Company LimitedNational DAB Licence Company Limited (DAB) is a joint venture between the Corporation and Special Broadcasting Services (SBS) to hold the digital radio multiplex licence. Both the ABC and SBS each hold one $1 share in DAB.

DAB is not a party to any of the service contracts for the provision of digital radio and does not receive the funds for digital radio operations/broadcast from the Government as these are paid directly to the Corporation and SBS.



9. Non-Financial Assets2013 2012 $’000 $’000

9A Land and buildingsFreehold land Fair value (a) 157 471 171 501 Total freehold land 157 471 171 501

Buildings on freehold landFair value (a) 387 436 407 472 Accumulated depreciation (16 698) (12 984)Total buildings on freehold land 370 738 394 488

Leasehold landFair value (a) 16 873 16 653 Accumulated depreciation (157) (44)Total leasehold land 16 716 16 609

Leasehold buildingsFair value (b) 67 593 61 330 Accumulated depreciation (1 954) (730)Total leasehold buildings 65 639 60 600

Leasehold improvementsFair value (b) 51 321 57 930 Accumulated depreciation (16 448) (17 598)Total leasehold improvements 34 873 40 332

Total land and buildings excluding capital work in progress 645 437 683 530

Capital work in progress at cost—Land and buildings 1 075 8 442

Total land and buildings 646 512 691 972



69. Non-Financial Assets continued

2013 2012 $’000 $’000

9B Infrastructure, plant and equipmentFair value (b) 599 154 605 410 Accumulated depreciation (391 896) (381 650)Total infrastructure, plant and equipment excluding capital work in progress

207 258

223 760

Capital work in progress at cost—Infrastructure, plant and equipment

41 661

20 405

Total infrastructure, plant and equipment 248 919 244 165

(a) Freehold land and buildings and leasehold land are carried at the Directors’ determination of fair value based on independent valuations, where appropriate. This is determined by the original acquisition cost together with capital expenditure since acquisition or latest independent valuation. Valuations were undertaken for material freehold land and buildings and leasehold land located in capital cities as at 31 March 2013 in accordance with the revaluation policy stated in Note 1.21: Property (Land and Buildings), Infrastructure, Plant and Equipment, and were completed by independent valuers, McGees Property.

(b) Leasehold buildings and improvements and infrastructure, plant and equipment are carried at the Directors’ determination of fair value in accordance with the revaluation policy stated in Note 1.21: Property (Land and Buildings), Infrastructure, Plant and Equipment.



9. Non-Financial Assets continuedTable A1Reconciliationoftheopeningandclosingbalancesofproperty, infrastructure and plant and equipment (2012–13)

Land $’000

Buildings on

freehold land

$’000

Leasehold buildings

and improve-

ments $’000

Total Buildings

$’000

Total land and buildings

$’000

Infra-structure, plant and

equipment $’000

Total $’000

As at 1 July 2012Gross book value 188 154 407 472 119 260 526 732 714 886 605 410 1 320 296 Accumulated depreciation and amortisation

(44)

(12 984)

(18 328)

(31 312)

(31 356)

(381 650)

(413 006)

Net book value as at 1 July 2012 188 110 394 488 100 932 495 420 683 530 223 760 907 290

Additions by purchase or internally developed

–

8 579

11 884

20 463

20 463

25 858

46 321

Revaluations and impairments recognised in other comprehensive Income

1 070

3 174

13

3 187

4 257

–

4 257 Revaluations recognised in the operating result

–

–

–

–

–

–

–

Depreciation (178) (35 472) (9 156) (44 628) (44 806) (41 302) (86 108)Write-down and impairment – – (3 002) (3 002) (3 002) (146) (3 148)Disposals – – – – – (917) (917)Transfers/reclassifications (14 815) (31) (159) (190) (15 005) 5 (15 000)

Net book value as at 30 June 2013 174 187 370 738 100 512 471 250 645 437 207 258 852 695

Carrying amount as at 30 June 2013 represented by:Gross book value 174 344 387 436 118 914 506 350 680 694 599 154 1 279 848 Accumulated depreciation and amortisation

(157)

(16 698)

(18 402)

(35 100)

(35 257)

(391 896)

(427 153)

Closing net book value as at 30 June 2013

174 187

370 738

100 512

471 250

645 437

207 258

852 695



69. Non-Financial Assets continuedTable A2Reconciliationoftheopeningandclosingbalancesofproperty, infrastructure and plant and equipment (2011–12)

Land $’000

Buildings on

freehold land

$’000

Leasehold buildings

and improve-

ments $’000

Total Buildings

$’000


$’000

Infra-structure, plant and

equipment $’000

Total $’000

As at 1 July 2011Gross book value 190 713 408 001 43 483 451 484 642 197 597 662 1 239 859 Accumulated depreciation and amortisation

(10) (8 252) (16 410) (24 662) (24 672) (362 462) (387 134)

Net book value as at 1 July 2011 190 703 399 749 27 073 426 822 617 525 235 200 852 725

Additions by purchase or internally developed

–

6 726

79 047

85 773

85 773

37 155

122 928

Revaluations and impairments recognised in other comprehensive Income

(2 479)

22 308

1 600

23 908

21 429

–

21 429 Revaluations recognised in the operating result

–

(11)

48

37

37

–

37

Depreciation (114) (33 764) (7 176) (40 940) (41 054) (45 790) (86 844)Write-down and impairment – – (166) (166) (166) (1 965) (2 131)Disposals – (5) (17) (22) (22) (862) (884)Transfers/reclassifications – (515) 523 8 8 22 30

Net book value as at 30 June 2012 188 110 394 488 100 932 495 420 683 530 223 760 907 290

Net book value as at 30 June 2012 represented by:Gross book value 188 154 407 472 119 260 526 732 714 886 605 410 1 320 296 Accumulated depreciation and amortisation

(44)

(12 984)

(18 328)

(31 312)

(31 356)

(381 650)

(413 006)

Closing net book value as at 30 June 2012

188 110

394 488

100 932

495 420

683 530

223 760

907 290




2013 2012 $’000 $’000

9C Intangibles (a)Computer software at cost 82 651 77 613 Accumulated amortisation (50 811) (41 514)Total intangibles excluding capital work in progress 31 840 36 099

Capital work in progress at cost—Intangibles 3 507 2 145

Total intangibles 35 347 38 244

(a) The Corporation holds the right to use licences provided by the Australian Government in the broadcast of analogue and digital television and radio. These are held at fair value and due to the conditions attached to these licences, which are asset specific, their fair value is determined on the basis of discounted future cash flows. The Corporation has assessed its licences and considers that their fair value is Nil (2012 Nil).

No intangibles are expected to be sold or disposed of within the next 12 months.

Table A3 Reconciliation of the opening and closing balances of intangibles (2012–13)

Computer software

Total

$’000 $’000As at 1 July 2012Gross book value 77 613 77 613 Accumulated depreciation and amortisation (41 514) (41 514)Net book value as at 1 July 2012 36 099 36 099

Additions by purchase or internally developed 5 038 5 038 Amortisation (9 297) (9 297)Write-down and impairment – –Transfers/reclassifications – – Net book value as at 30 June 2013 31 840 31 840

Carrying amount as at 30 June 2013 represented by:Gross book value 82 651 82 651 Accumulated depreciation and amortisation (50 811) (50 811)

Closing net book value as at 30 June 2013 31 840 31 840



69. Non-Financial Assets continuedTable A4 Reconciliation of the opening and closing balances of intangibles (2011–12)

Computer software

Total

$’000 $’000As at 1 July 2011Gross book value 63 799 63 799 Accumulated depreciation and amortisation (35 533) (35 533)Net book value as at 1 July 2011 28 266 28 266

Additions by purchase or internally developed 16 165 16 165 Amortisation (8 219) (8 219)Write-down and impairment (83) (83)Transfers/reclassifications (30) (30)Net book value 30 June 2012 36 099 36 099

Net book value as at 30 June 2012 represented by:Gross book value 77 613 77 613 Accumulated depreciation and amortisation (41 514) (41 514)

Closing net book value as at 30 June 2012 36 099 36 099

Table B Assets under construction

Land $’000

Buildings on

freehold land $’000

Leasehold buildings

and improve-

ments $’000

Total Buildings

$’000


$’000

Infrastruc-ture,

plant and equipment

$’000Intangibles

$’000Total $’000

Carrying amount at 30 June 2013

–

1 067

8

1 075

1 075

41 661

3 507

46 243

Carrying amount at 30 June 2012

–

1 151

7 291

8 442

8 442

20 405

2 145

30 992




2013 2012 $’000 $’000

9DAssetsclassifiedasheldforsaleLand at carrying value (a) 15 000 – Totalassetsclassifiedasheldforsale 15 000 –

(a) The Corporation issued an open tender on 15 April 2013 for the sale of a property surplus to requirements located at 600 Coronation Drive, Toowong, Queensland. Expressions of interest closed on 23 May 2013. As at 30 June 2013, a number of shortlisted bids were being evaluated with best and final offers due on 31 July 2013.

9E InventoriesRetail Inventory held for sale 14 543 13 668 Provision for stock obsolescence – (8)Total retail 14 543 13 660

Broadcasting consumablesInventory not held for sale at cost 41 70Total broadcasting consumables 41 70

TV programs held for distributionPurchased 26 989 30 289 Produced 51 577 41 163 In progress 60 782 48 091 Total TV programs held for distribution 139 348 119 543

Total inventories 153 932 133 273

Inventories are expected to be recovered in: No more than 12 months 130 472 117 442 More than 12 months 23 460 15 831 Total inventories 153 932 133 273

During 2013, $42 956 018 (2012 $40 694 203) of inventory held for sale was recognised as an expense.

During 2013, $1 766 760 (2012 $1 979 662) of inventory held for distribution was recognised as an expense.

9F PrepaymentsPrepaid property rentals 47 153 Prepaid royalties 8 413 8 455 Other prepayments 6 099 8 287 Total prepayments 14 559 16 895

Total other non-financial assets are expected to be recovered in: No more than 12 months 10 477 13 262 More than 12 months 4 082 3 633 Total prepayments 14 559 16 895



610. Payables2013 2012

Notes $’000 $’00010A SuppliersTrade creditors 18 74 609 57 560 Total suppliers 74 609 57 560

Supplier payables expected to be settled in: No more than 12 months 74 421 57 440 More than 12 months 188 120 Total supplier payables 74 609 57 560

10B Other payablesInterest payable 18 – 1 Salaries and wages 18 22 759 21 249 Superannuation 18 280 325 Unearned revenue 18 28 604 15 821 Other payables 18 3 089 3 347 Total other 54 732 40 743

Total other payables expected to be settled in: No more than 12 months 41 367 34 073 More than 12 months 13 365 6 670 Total other payables 54 732 40 743

Total payables 129 341 98 303

No forward exchange contracts held as cash flow hedges at 30 June 2013 are reported in Other payables (2012 $4 940).



11. Provisions2013 2012 $’000 $’000

11A Employee provisionsAnnual leave 53 197 55 564 Long service leave (a) 92 225 96 587 Total employee provisions 145 422 152 151

Employee provisions are expected to be settled in (b): No more than 12 months 125 408 131 683 More than 12 months 20 014 20 468 Total employee provisions 145 422 152 151

(a) Independent actuarial calculations for the Corporation were performed by Professional Financial Consulting Pty Ltd as at 30 June 2013.

(b) The settlement of employee provisions is based on the individual employee’s entitlement to leave. Where an employee has a current entitlement to leave (i.e. could apply to take that leave straight away), the value of that entitlement is included in the employee provisions expected to settle in no more than 12 months. Where the ABC expects that an employee will eventually meet an entitlement for leave (i.e. at some time in the future), but is not yet entitled to that leave, the value of the leave is included in the employee provision expected to settle in more than 12 months.

11B Other provisionsMake good 2 425 2 486 Total other provisions 2 425 2 486

Other provisions expected to be settled in: No more than 12 months 911 722 More than 12 months 1 514 1 764 Total other provisions 2 425 2 486

Total provisions 147 847 154 637

Reconciliation of the make good provisionOpening balance 2 486 2 891 Additional provision made 137 20 Amounts used (111) (719)Amounts reversed (86) (5)Unwinding of discount or change in discount rate (1) 299 Closing balance 2 425 2 486



612. Cash Flow Reconciliation 2013 2012

$’000 $’000Reconciliation of cash and cash equivalents between Balance Sheet and Cash Flow Statement

Cash and cash equivalents per:Cash Flow Statement 5 850 5 823 Balance Sheet 5 850 5 823 Difference – –

Reconciliation of net cost of services to net cash from operating activities

Net cost of services (1 009 024) (1 006 795)

Add revenue from Government 1 023 700 997 403

Adjustment for non-cash items Depreciation of property, plant and equipment 86 108 86 844 Amortisation of intangibles 9 297 8 219 Transfer (from)/to employee provisions (6 729) 18 898 Transfer from other provisions (61) (405)Impairment of:– receivables and advances 1 166 1 142 – land and buildings 3 002 129 – infrastructure, plant and equipment 2 118 2 061 – intangibles – 83 – inventories 595 799 Loss from disposal of assets 787 693 Unrealised foreign exchange (gain) (614) (444)

Changes in assets and liabilities(Increase) in receivables (3 798) (266)Decrease/(increase) in accrued revenue 4 375 (4 472)(Increase)/decrease in prepayments 2 336 2 959 (Increase) in inventories (21 254) (19 882)Increase/(decrease) in supplier payables 9 804 (9 480)Increase in other payables 13 989 5 476 Net cash from operating activities 115 797 82 962



13. Contingent Assets and Liabilities2013 2012

$’000 $’000QuantifiableContingenciesContingent liabilities Other guarantees (a) 985 985Total contingent liabilities 985 985

(a) The Corporation has provided guarantees and an indemnity to the Reserve Bank of Australia in support of bank guarantees required in the day to day operations of the Corporation.

QuantifiableContingenciesThe Corporation has no material contingent assets as at 30 June 2013 (2012 Nil).

SignificantRemoteContingenciesThe Corporation has no remote contingencies (2012 Nil).

UnquantifiableContingenciesIn the normal course of activities, claims for damages and other recoveries have been lodged at the date of this report against the Corporation and its staff. The Corporation has disclaimed liability and is actively defending these actions. It is not possible to estimate the amounts of any eventual payments which may be required or amounts that may be received in relation to any of these claims.

14. Directors’ Remuneration 2013 2012

$ $Remuneration received or due and receivable by Directors of the Corporation

515 1430

438 000

The number of non-Executive Directors of the Corporation included in these figures are shown below in the relevant remuneration bands:

Number

Number

$0 – $29 999 1 1 $30 000 – $59 999 5 5 $60 000 – $89 999 1 2 $180 000 – $209 999 1 –Total number of Directors of the Corporation 8 8

15. Related Party DisclosuresDirectors of the CorporationThe Directors of the Corporation during the year were:

• The Hon James Spigelman AC QC (Chair) • Cheryl Bart AO• Jane Bennett• Simon Mordant AM (appointed 14 November 2012)• Matt Peacock (appointed 22 April 2013)• Dr Julianne Schultz AM• Mark Scott AO (Managing Director)• Steven Skala AO • Prof Fiona Stanley AC

The aggregate remuneration of non-executive Directors is disclosed in Note 14: Directors’ Remuneration with remuneration of executive directors disclosed in Note 16: Officers’ Remuneration.



6Transactions with entities in the wholly owned groupTransactions between related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise stated.

Music Choice Australia Pty Ltd and The News Channel Pty LimitedThe companies are wholly owned subsidiaries of the Corporation that did not trade during the 2012–13 financial year.

The Corporation provided secretarial and accounting services for Music Choice Australia Pty Ltd and The News Channel Pty Limited during the year free of charge.

Transactions with Joint Venture EntitiesMediaHub Australia Pty Limited (MediaHub)Two ABC employees are directors of MediaHub. Neither is remunerated nor do they receive any other benefits from MediaHub.

The Corporation paid user fees to MediaHub totalling $4 869 385 (2012 $4 198 968). The Corporation also contributed a further $1 849 580 (2012 $2 630 633) in capital contributions.

The Corporation received $85 425 (2012 $196 219) in service fees from MediaHub as payment for ABC employees who have been seconded to MediaHub.

Further, the Corporation has commitments for capital contributions to MediaHub (by acquiring shares) and also for user fees.

All transactions with MediaHub were at arm’s length.

Freeview Australia Limited (Freeview)Two ABC representatives are directors of Freeview with one also the Chairman of the Freeview Board. Neither are remunerated nor do they receive any other benefits from Freeview.

The Corporation contributes towards the operational costs of Freeview in proportion to its shareholding, and may also provide other operational services to Freeview from time to time. The Corporation does not expect to receive any material income from Freeview. As at 30 June 2013, the Corporation had contributed $345 512 (2012 $387 940) towards the operational costs of Freeview. These costs do not constitute a contribution of capital and have been recognised directly in the Corporation’s Statement of Comprehensive Income.

All transactions with Freeview were at arm’s length.

National DAB Licence Company Limited (DAB)Two ABC employees are directors of DAB. Neither is remunerated nor do they receive any other benefits from DAB.

As at 30 June 2013, the Corporation contributed $3 000 (2012 $2 850) towards the operational costs of DAB. These costs do not constitute a contribution of capital and have been recognised directly in the Corporation’s Statement of Comprehensive Income.

All transactions with DAB were at arm’s length.

15. Related Party Disclosures continued



16.Officers’Remuneration16AExpenserecognisedinrelationtoOfficers’employment

2013 2012 $ $

Short-termemployeebenefitsSalary (including leave taken) 2 358 429 2 334 659 Annual leave accrued (12 311) 90 731 Performance bonus 350 221 210 000 Other 91 063 89 895 Totalshort-termemployeebenefits 2 787 402 2 725 285

Superannuation 362 362 343 359 Long service leave (5 473) 85 359 Termination payments 348 288 –Totalofficers’remunerationexpenses 3 492 579 3 154 003

1. Officers’ remuneration includes Officers concerned with or taking part in the management of the Corporation, including the Managing Director.

2. The above table is prepared on an accrual basis. Therefore the performance bonus expenses disclosed above may differ from the cash bonus paid in Table 16B.

16BAverageannualisedremunerationpackagesforOfficersemployedat30June 2013Total remuneration: No. Reportable Contributed Reportable Bonus Total salary superannuation allowances paid reportable remuneration $ $ $ $ $$450 000 – $479 999 2 345 399 65 551 – 55 000 465 950$480 000 – $509 999 1 386 852 51 896 – 60 000 498 748 $510 000 – $539 999 1 354 417 67 979 – 89 995 512 391 $780 000 – $809 999 1 714 276 91 116 – – 805 392 5

2012Total remuneration: No. Reportable Contributed Reportable Bonus Total salary superannuation allowances paid reportable remuneration $ $ $ $ $$360 000 – $389 999 1 250 014 82 961 10 712 25 000 368 687 $390 000 – $419 999 1 303 563 76 417 – 40 000 419 980 $420 000 – $449 999 1 326 062 61 838 – 50 000 437 900 $450 000 – $479 999 2 355 351 58 564 – 47 500 461 415 $750 000 – $779 999 1 694 106 79 681 – – 773 787 6

Notes1. This table reports substantive officers of the Corporation who received remuneration in excess of $180 000

during the reporting period. Each row is an averaged figure based on headcount for individuals in the band.2. ‘Reportable salary’ includes the following: a) gross payments (less any bonuses paid, which are separated out and disclosed in the ‘bonus paid’ column); b) reportable fringe benefits (at the net amount prior to ‘grossing up’ to account for tax benefits); and c) exempt foreign employment income.3. The ‘contributed superannuation’ amount is the average actual superannuation contributions paid to senior

executives in that reportable remuneration band during the reporting period, including any salary sacrificed amounts, as per officers’ payment summaries.



616BAverageannualisedremunerationpackagesforOfficersemployedat30Junecontinued4. ‘Reportable allowances’ are the average actual allowances paid as per the ‘total allowances’ line on officers’

payment summaries.5. ‘Bonus paid’ represents average actual bonuses paid during the reporting period in that reportable

remuneration band. The bonus paid within a particular band may vary between financial years due to various factors such as individuals commencing with or leaving the entity during the financial year.

6. Various salary sacrifice arrangements were available to senior executives including superannuation, motor vehicle and expense payment fringe benefits. Salary sacrifice benefits are reported in the ‘reportable salary’ column, excluding salary sacrificed superannuation, which is reported in the ‘contributed superannuation’ column.

16C Other employees with gross payments above $180 000 Average annual reportable remuneration paid 2013Total remuneration: No. Reportable Contributed Reportable Bonus salary superannuation allowances paid Total $ $ $ $ $$180 000 – $209 999 102 165 313 25 472 13 2 484 193 282 $210 000 – $239 999 46 193 544 24 757 5 3 790 222 096 $240 000 – $269 999 28 225 614 25 302 7 3 214 254 137 $270 000 – $299 999 14 253 122 31 225 – 2 696 287 043 $300 000 – $329 999 12 294 619 17 824 – 4 042 316 485 $330 000 – $359 999 10 323 690 21 190 – 1 220 346 100 $360 000 – $389 999 4 314 355 31 568 – 23 500 369 423 $390 000 – $419 999 4 362 561 22 999 – 19 313 404 873 $420 000 – $449 999 1 408 394 15 855 – – 424 249 $450 000 – $479 999 3 405 164 41 579 141 19 890 466 774 $680 000 – $709 999 1 668 665 18 065 – – 686 730 $800 000 – $829 999 1 696 310 40 252 – 90 226 826 788 226 2012Total remuneration: No. Reportable Contributed Reportable Bonus salary superannuation allowances paid Total $ $ $ $ $$180 000 – $209 999 77 162 143 29 050 3 2 274 193 470 $210 000 – $239 999 49 192 341 27 963 21 3 295 223 620 $240 000 – $269 999 23 225 706 22 223 – 2 989 250 918 $270 000 – $299 999 21 249 086 30 849 – 2 167 282 102 $300 000 – $329 999 10 283 208 27 147 – 4 000 314 355 $330 000 – $359 999 6 314 909 20 054 – 9 167 344 130 $360 000 – $389 999 3 320 158 30 906 – 16 667 367 731 $390 000 – $419 999 2 356 155 48 546 – – 404 701 $420 000 – $449 999 3 370 461 40 894 – 20 000 431 355 $540 000 – $569 999 1 530 737 15 970 – – 546 707 195

The above table includes 55 employees (2012 65 employees) who terminated during the year and who received a total of $3 623 543 (2012 $2 960 966) in termination payments.Notes1. ‘Total remuneration’ includes part-time arrangements 2. This table reports staff: a) who were employed by the entity during the reporting period; b) whose reportable remuneration was $180 000 or more for the financial period; and c) were not required to be disclosed in Tables A, B or director disclosures. Each row is an averaged figure

based on headcount for individuals in the band.

16.Officers’Remunerationcontinued



16C Other employees with gross payments above $180 000 continued3. ‘Reportable salary’ includes the following: a) gross payments (less any bonuses paid, which are separated out and disclosed in the ‘bonus paid’

column); b) reportable fringe benefits (at the net amount prior to ‘grossing up’ to account for tax benefits); and c) exempt foreign employment income.4. The ‘contributed superannuation’ amount is the average actual superannuation contributions paid to staff in

that reportable remuneration band during the reporting period, including any salary sacrificed amounts, as per individuals’ payment summaries.

5. ‘Reportable allowances’ are the average actual allowances paid as per the ‘total allowances’ line on individuals’ payment summaries.

6. ‘Bonus paid’ represents average actual bonuses paid during the reporting period in that reportable remuneration band. The ‘bonus paid’ within a particular band may vary between financial years due to various factors such as individuals commencing with or leaving the entity during the financial year.

7. Various salary sacrifice arrangements were available to other highly paid staff including superannuation, motor vehicle and expense payment fringe benefits. Salary sacrifice benefits are reported in the ‘reportable salary’ column, excluding salary sacrificed superannuation, which is reported in the ‘contributed superannuation’ column.

17. Auditor’s Remuneration2013 2012

$ $Remuneration to the Auditor-General for auditing the financial statements for the reporting period

222 500

210 000

KPMG has been contracted by the Australian National Audit Office to provide audit services to the Corporation on their behalf. In 2013, KPMG has earned additional fees of $56 208 (2012 $42 296) for services that were separately contracted by the Corporation.

18. Financial Instruments

18.1 Capital Risk ManagementThe Corporation manages its capital to ensure that it is able to continue as a going concern through aligning operations with Government funded objectives. The Corporation’s overall strategy remains unchanged from previous years with borrowings limited to operating and financing cash flows used to manage operations and make loan repayments.

18.2 Categories of Financial Instruments2013 2012

Notes $’000 $’00018.2A Categories of Financial InstrumentsFinancial assetsCash and cash equivalents 7A 5 850 5 823 Goods and services receivables 7B 4 724 5 688 Held to maturity financial assets 7B 131 450 69 600 Other receivables 7B 1 408 1 802 Accrued revenue 7C 5 477 11 352 Investments accounted for using the equity method 8 17 871 18 333 Carryingamountoffinancialassets 166 780 112 598

16.Officers’Remunerationcontinued



6

2013 2012 Notes $’000 $’000

Financial liabilitiesTrade creditors 10A 74 609 57 560 Interest payable 10B – 1 Salaries and wages 10B 22 759 21 249 Superannuation 10B 280 325 Unearned revenue 10B 28 604 15 821 Other payables 10B 3 089 3 347 Carryingamountoffinancialliabilities 129 341 98 303

18.2B Net Income and Expenses from Financial AssetsIncomefromfinancialassetsInterest 5B 7 504 8 296 Net foreign exchange gain 5D 693 449 Totalincomefromfinancialassets 8 197 8 745

18.2C Net Income and Expenses related to Financial Liabilities

Expensesrelatedtofinancialliabilities Finance costs 4E 5 286 Totalexpensesrelatedtofinancialliabilities 5 286

18.3 Financial Risk ManagementThe Corporation’s financial risk management policies and procedures are established to identify and analyse the risks faced by the Corporation, to set appropriate risk limits and controls to monitor risks and adherence to limits. The Corporation’s policies are reviewed regularly to reflect changes in the Corporation’s activities. There has been no change in the policies from the previous year. Compliance with policies and exposure limits are reviewed by the Corporation’s internal auditors on a continuous basis.

To meet the Corporation’s financial risk management objectives, surplus cash is invested into short term, highly liquid investments with maturities at acquisition date of greater than three months. These investments are included as ‘other receivables’.

The Corporation’s Treasury function provides advice and services to the business, coordinates access to foreign currency contracts and monitors and assesses the financial risks relating to the operations of the Corporation through internal risk reports.

Where appropriate, the Corporation seeks to minimise the effects of its financial risks by using derivative financial instruments to hedge its risk exposures. The use of financial derivatives is governed by the Corporation’s policies as approved by the Board of Directors, which provide written principles on foreign exchange risk, credit risk, the use of financial derivatives and investment of funds.

The Corporation does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes.

18.4 Net Fair Values of Financial Assets and LiabilitiesThe following methods and assumptions were used to estimate the net fair values:

Cash,receivables,payablesandshorttermborrowingsThe carrying amount approximates the net fair value because of the short term maturity.

Loans from GovernmentThe net fair values of long term borrowings are estimated using discounted cash flow analysis, based on current interest rates for liabilities with similar risk profiles. At 30 June 2013, the Corporation had no loans from Government.

18. Financial Instruments continued

18.2 Categories of Financial Instruments continued



18.4 Net Fair Values of Financial Assets and Liabilities continued

Forward exchange contractsThe net fair values of forward exchange contracts are taken to be the unrealised gain or loss at balance date calculated by reference to current forward exchange rates for contracts with similar maturity profiles.

Carrying Amount Net Fair Value 2013 2012 2013 2012 $’000 $’000 $’000 $’000Financial Assets Forward exchange contracts 414 68 414 68

18.5 Fair Value MeasurementsThe fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure purposes.

The Corporation has adopted the amendment to AASB 7 Financial Instruments: Disclosures, which requires disclosure of fair value measurements by level in accordance with the following fair value measurement hierarchy:

• Level 1—quoted prices (unadjusted) in active markets for identical assets or liabilities;• Level 2—inputs other than quoted prices included within level 1 that are observable for the asset or liability,

either directly (as prices) or indirectly (derived from prices); and• Level 3—inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The Corporation has no level 1 financial instruments traded in active markets (such as publicly traded derivatives, or trading and available-for-sale securities) that are based on quoted market prices at the end of the reporting period.

The fair values of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) are determined using valuation techniques. The Corporation uses a variety of methods and makes assumptions that are based on market conditions existing at the end of each reporting period. The fair value of forward exchange contracts are determined using a level 2 technique based on the forward exchange market rates at the end of the reporting period. The fair value of forward exchange contracts at 30 June 2013 was $413 868 (2012 $68 091).

The Corporation has no level 3 financial instruments where a valuation technique for the instruments is based on significant unobservable inputs.

18.6 Credit RiskCredit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Corporation.

Credit risk arises from the financial assets of the Corporation, which comprise cash and cash equivalents, trade and other receivables, available-for-sale financial assets and derivative instruments.

The Corporation has adopted a policy of only dealing with credit worthy counterparties and obtaining collateral where appropriate, as a means of mitigating the risk of financial loss from defaults. The Corporation assesses credit ratings through independent ratings agencies and if not available, uses publicly available financial information and its own trading record to rate customers.

The Corporation manages its credit risk by undertaking credit checks on customers who wish to take on credit terms. The Corporation has policies that set limits for each individual customer. Ongoing credit evaluations are performed on the financial condition of accounts receivable.

The Corporation has no material concentration of credit risk with any single customer as the Corporation has a large number of customers spread across a range of industries and geographical areas.

The credit risk arising from dealings in financial instruments is controlled by a strict policy of credit approvals, limits and monitoring procedures. Credit exposure is controlled by counterparty limits that are reviewed and approved by the Board of Directors.




6

18.6 Credit Risk continued

The Corporation does not have any significant credit risk exposure to any single counterparty. The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with credit ratings of at least A- as assigned by Standard & Poors.

The Corporation’s maximum exposure to credit risk at reporting date in relation to each class of recognised financial assets is the carrying amount, net of allowance for doubtful debts, of those assets as indicated in the Balance Sheet.

Credit exposure of foreign currency and interest rate bearing investments is represented by the net fair value of the contracts, as disclosed.

Not Past Not Past Past Past Due nor Due nor Due or Due or Impaired Impaired Impaired Impaired

2013 2012 2013 2012Categoriesoffinancialinstruments $’000 $’000 $’000 $’000Financial assets Cash and cash equivalents 5 850 5 823 – – Goods and services receivables 4 033 5 140 691 548 Held to maturity financial assets 131 450 69 600 – – Other receivables 1 408 1 802 – – Accrued revenue 5 477 11 352 – – Investments accounted for using the equity method 17 871 18 333 – – Carryingamountoffinancialassets 166 089 112 050 691 548

Ageingoffinancialassetsthatarepastduebutnotimpaired

0 to 30 31 to 60 61 to 90 90 plus Total days days days days

$’000 $’000 $’000 $’000 $’0002013 Financial assets Goods and services receivables 466 100 70 24 660 Totalpastduebutnotimpairedfinancialassets 466 100 70 24 660

2012 Financial assets Goods and services receivables 198 147 92 76 513 Totalpastduebutnotimpairedfinancialassets 198 147 92 76 513

18.7 Market RiskMarket risk includes foreign currency risk, which is detailed in Note 18.8: Foreign Currency Risk, and interest rate risk, which is detailed in Note 18.10: Interest Rate Risk.

The Corporation is not exposed to any other price risk on financial instruments.




18.8 Foreign Currency RiskForeign currency risk refers to the risk that the fair value or future cash flows of a financial instrument will fluctuate due to the changes in foreign exchange rates.

The Corporation’s activities expose it primarily to the financial risk of changes in foreign currency exchange rates arising from transactions and assets and liabilities that are denominated in a currency that is not Australian dollars. The Corporation enters into forward exchange contracts to hedge the foreign exchange rate risk arising from some of these transactions. These forward exchange contracts are not designated as cash flow hedges.

The Corporation is exposed to foreign currency denominated in United States Dollars (USD), Great British Pounds (GBP) and Euros (EUR).

The following table details the effect on the profit and equity as at 30 June 2013 from a 15.7% (2012 15%) favourable/unfavourable change in the rate of the Australian Dollar (AUD) against the currencies to which the Corporation is exposed, with all other variables held constant.

Foreign Currency Sensitivity 2013 2013 2012 2012 $’000 $’000 $’000 $’000Foreign Currency outstanding positions at: Profitand Equity Profit and Equity Loss Loss USD AUD / USD +15.7% (2012 +15%) (481) (9) (423) –AUD / USD -15.7% (2012 -15%) 481 9 423 – GBP AUD / GBP +15.7% (2012 +15%) (289) – (196) – AUD / GBP -15.7% (202 -15%) 289 – 196 – EUR AUD / EUR +15.7% (2012 +15%) (27) (177) (61) (26) AUD / EUR -15.7% (2012 -15%) 27 177 61 26

The impact on the Corporation’s surplus is not material.

18.9 Hedging InstrumentsSpecificHedgesThe Corporation enters into forward exchange contracts to cover specific foreign currency payments when exposures of $50 000 or greater (equivalent) are entered into under a firm contract for goods or services involving a specific foreign currency amount and payment date. Exposures are covered if they fall within a set period, which can generally be a minimum of 3 months or maximum of 6 months subject to market conditions.

The balance of the hedging reserve in equity reflects a net gain of $74 231 (2012 net loss of $4 671) on specific hedges of foreign currency purchases as at 30 June 2013. The Corporation’s cash flow hedges were all effective during the period.

The following table sets out the gross value to be received under forward exchange contracts, the weighted average contracted exchange rates and the settlement periods of outstanding contracts for the Corporation.

Sell Australian Dollars Average Exchange Rate 2013 2012 2013 2012 $’000 $’000 Buy USD Less than 1 year 1 921 1 598 1.0300 1.0245 Buy GBP Less than 1 year 1 392 769 0.6465 0.6505 Buy EUR Less than 1 year 1 125 274 0.7508 0.7818




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18.9 Hedging Instruments continued

General HedgesThe Corporation also enters into forward exchange contracts to cover foreign currency payments when exposures less than $50 000 (equivalent) of a recurrent nature and with varying foreign currency amounts and payment dates are incurred. General cover is typically held between 40% and 60% of estimated exposures for USD, GBP and EUR subject to market conditions.

At balance date, the Corporation held forward exchange contracts to buy USD, GBP and EUR. Gains/losses arising from general hedges outstanding at year end have been taken to profit or loss. The net gain of $339 637 (2012 net gain $72 672) on general hedges of anticipated foreign currency purchases from July 2012 to June 2013 has been recognised at balance date through profit or loss.

18.10 Interest Rate RiskInterest rate risk refers to the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

The Corporation is typically not exposed to interest rate risk on borrowings, as all borrowings are at fixed interest rates and the Corporation repaid its loan in full before 30 June 2012. The Corporation derives interest revenue from funds invested, which is impacted by interest rate fluctuations. Although the Corporation is not dependent on interest revenue to continue operations, a 1.20% (2012 1.40%) decrease in the interest rate would result in a decrease in interest revenue of $2 032 594 (2012 $1 990 599) and a 1.20% (2012 1.40%) increase in the interest rate would result in an increase in interest revenue of $2 032 594 (2012 $1 990 599). The change in interest revenue is proportional to the change in interest rates.

18.11 Liquidity RiskLiquidity risk is the risk that the Corporation will encounter difficulty in meeting obligations associated with financial liabilities.

The Corporation is dependent upon revenue from Government. At 30 June 2013, in excess of 86% (2012 85%) of normal activities are funded in this manner, and without this revenue, the Corporation would be unable to meet its obligations.

Maturitiesforfinancialliabilities1 year

or less1 to 2 years

2 to 5 years

> 5 years

Total

$’000 $’000 $’000 $’000 $’0002013Financial liabilitiesTrade creditors 74 421 – – 188 74 609 Interest payable – – – – – Salaries and wages 22 759 – – – 22 759 Superannuation 280 – – – 280 Unearned revenue 15 786 462 1 167 11 189 28 604 Other payables 2 542 226 321 – 3 089 Totalfinancialliabilities 115 788 688 1 488 11 377 129 341

2012Financial liabilitiesTrade creditors 57 440 5 – 115 57 560 Interest payable 1 – – – 1 Salaries and wages 21 249 – – – 21 249 Superannuation 325 – – – 325 Unearned revenue 9 611 270 1 538 4 402 15 821 Other payables 2 887 199 261 – 3 347 Totalfinancialliabilities 91 513 474 1 799 4 517 98 303

The Corporation has no “On demand” financial liabilities. There are no financial liabilities with maturities of more than 5 years.




2013 2012 Financial Assets Notes $’000 $’000

TotalfinancialassetsasperbalancesheetLess: non-financial instrument components

176 731 116 957

Statutory receivables 7B 9 982 4 394Total non-financial instrument components 9 982 4 394

Add: impairment allowance account 7B 31 35

Totalfinancialassetsasperfinancialinstrumentnote 166 780 112 598

20. Assets Held in Trust 2013 2012Monetary Assets $ $

The Corporation is trustee for a foundation Ian Reed with accumulated funds at 30 June as follows: Foundation

Total amount held at the beginning of the reporting period 577 601 600 426 Interest received 17 399 26 975 Payments (125 513) (49 800)Total amount held at the end of the reporting period 469 487 577 601

Assets held in trust are monetary assets with monies received under formal trust arrangements. The trust was established for the purpose of the education, encouragement, advancement and general promotion of potential and aspiring writers of radio plays and dramas and is independently managed in accordance with the terms of the trust deed.

Funds are held in authorised trustee investments, are not available for other purposes of the Corporation and are not recognised in the financial statements.

21. Reporting by Outcomes

Note 21A—Net Cost of Outcome Delivery The Corporation’s cost of outcomes is determined through a process that identifies those costs and revenues directly related to the provision of a particular outcome. The allocation of costs for Outcome 2, Outcome 3 and Outcome 4 consist of direct costs of dedicated analog and digital transmission functions. The costs for Outcome 1 represent the costs of undertaking the Corporation’s general operational activities.

Note 21A—Net Cost of Outcome Delivery Outcome 1 Outcome 2 Outcome 3 Outcome 4 Total

2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000Total Expenses 989 051 999 882 85 657 90 850 90 207 86 306 2 962 2 891 1 167 877 1 179 929 Income from non- government sector Other 156 491 170 767 – – 51 50 – – 156 542 170 817 Total income from non- government sector 156 491 170 767 – – 51 50 – – 156 542 170 817 Net cost/(contribution) of outcome delivery 832 560 829 115 85 657 90 850 90 156 86 256 2 962 2 891 1 011 335 1 009 112

19. Financial Assets Reconciliation



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Note21B—MajorClassesofDepartmentalExpenses,Income,AssetsandLiabilities by Outcome

The ABC’s assets and liabilities are attributed to Outcome 1 unless they can specifically be attributed to Outcome 2, Outcome 3 or Outcome 4.

Note21B—MajorClassesofDepartmentalExpenses,Income,AssetsandLiabilitiesbyOutcome Outcome 1 Outcome 2 Outcome 3 Outcome 4 Total

2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000ExpensesEmployees 477 379 486 482 – – 120 – – – 477 499 486 482 Suppliers 250 548 258 601 85 657 90 850 90 087 86 306 2 962 2 891 429 254 438 648 Depreciation and amortisation 95 405 95 063 – – – – – – 95 405 95 063 Program amortisation 158 046 154 543 – – – – – – 158 046 154 543 Finance costs 5 286 – – – – – – 5 286 Write–down and impairment of assets 6 881 4 214 – – – – – – 6 881 4 214 Net loss from disposal of assets 787 693 – – – – – – 787 693

Total 989 051 999 882 85 657 90 850 90 207 86 306 2 962 2 891 1 167 877 1 179 929 IncomeRevenue from government 830 700 806 429 88 669 92 473 100 673 94 913 3 658 3 588 1 023 700 997 403 Sale of goods and services 125 982 140 208 – – – – – – 125 982 140 208 Interest 7 504 8 296 – – – – – – 7 504 8 296 Share of deficit of jointly controlled entities (2 311) (2 317) – – – – – – (2 311) (2 317) Other 24 623 24 131 – – 51 50 – – 24 674 24 181 Gains 693 449 – – – – – – 693 449

Total 987 191 977 196 88 669 92 473 100 724 94 963 3 658 3 588 1 180 242 1 168 220 AssetsCash and cash equivalents 5 850 5 823 – – – – – – 5 850 5 823 Receivables 115 534 68 305 6 301 3 285 25 017 9 175 681 684 147 533 81 449 Accrued revenue 5 477 11 352 – – – – – – 5 477 11 352 Investments 17 871 18 333 – – – – – – 17 871 18 333 Land and buildings 646 512 691 972 – – – – – – 646 512 691 972 Infrastructure, plant and equipment 248 722 244 165 – – 197 – – – 248 919 244 165 Intangibles 35 347 38 244 – – – – – – 35 347 38 244 Assets classified as held for sale 15 000 – – – – – – – 15 000 Inventories 153 932 133 273 – – – – – – 153 932 133 273 Prepayments 14 121 16 276 92 126 330 476 16 17 14 559 16 895

Total 1 258 366 1 227 743 6 393 3 411 25 544 9 651 697 701 1 291 000 1 241 506 LiabilitiesSuppliers 72 982 57 084 740 10 886 462 1 4 74 609 57 560 Other payables 54 547 40 508 – – 185 235 – 54 732 40 743 Provisions 147 847 154 637 – – – – – – 147 847 154 637

Total 275 376 252 229 740 10 1 071 697 1 4 277 188 252 940

21. Reporting by Outcomes continued



22. Controlled Entities Beneficial Beneficial percentage percentage Place of held by held by incorporation economic entity economic entity

2013 2012Ultimate parent entity: Australian Broadcasting Corporation

Controlled entities of Australian Broadcasting Corporation:

Music Choice Australia Pty Ltd Australia 100% 100%

The News Channel Pty Limited Australia 100% 100%

Music Choice Australia Pty Ltd and The News Channel Pty Ltd have been dormant since 2000 and have not traded in the 2012–13 financial year. As a result, consolidated financial statements for the ABC Group have not been presented as the operations and results of the Corporation are reflective of those of the consolidated entity.

Documents

Casey – by ABC Open producer Solua Middleton, Gold Coast